Income Taxes

9 Months Ended

Mar. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

In general, the Company is required to use an estimated annual effective tax rate to measure the tax benefit or tax expense recognized in an interim period. The estimated annual effective tax rate exceeds the statutory federal tax rate of 21% primarily due to state taxes, nondeductible officers’ compensation, and players’ disability insurance premiums expense. The estimated annual effective tax rate is revised on a quarterly basis.

Income tax expense for the three and nine months ended March 31, 2025 of $36,857 and $30,507, respectively, reflects an effective tax rate of 163% and 310%, respectively.

Income tax expense for the three and nine months ended March 31, 2024 of $34,018 and $29,658, respectively, reflects an effective tax rate of 47%.

During the nine months ended March 31, 2025, the Company made income tax payments, net of refunds, of $20,958.

The Company was notified in March of 2025 that the State of New York was commencing an audit of the state income tax returns for the fiscal years ended June 30, 2022 and 2023. The Company does not expect the examinations, when finalized, to result in material changes.

The Company had $35,963 and $15,775 of accrued federal and state income tax, recorded within other accrued liabilities in the accompanying consolidated balance sheets as of March 31, 2025 and June 30, 2024, respectively.